## Worksport (WKSP) Delivers a Strong Q3 2024 Performance: Revenue Soars, 2025 Outlook Bright
Worksport Ltd. (WKSP) announced impressive third-quarter 2024 financial results, highlighting a remarkable 581% year-over-year jump in revenue. This impressive performance outpaced analyst estimates, signaling the company’s continued momentum and robust growth strategy.
The company’s revenue climbed to $3.12 million in the third quarter, a significant leap from $0.51 million in the same period last year. This upward trend is fueled by the successful expansion of both B2B and B2C channels, coupled with rising demand for Worksport’s innovative products. Notably, direct-to-consumer sales surged to $1.59 million in Q3 2024, representing 51% of total revenue, demonstrating the company’s growing consumer appeal.
While Worksport reported an operating loss of $3.91 million for the quarter, this remained relatively flat year-over-year despite a 3.6% increase in operating costs. The net loss amounted to $4.13 million, slightly down from the $3.95 million loss recorded in the same period of 2023.
Key Highlights:
*
Revenue Growth:
581% year-over-year to $3.12 million, surpassing analyst expectations.*
Gross Profit:
Increased 176% year-over-year to $0.24 million.*
Direct-to-Consumer Sales:
Soared from $21,599 in Q3 2023 to $1.59 million in Q3 2024.*
New Product Launches:
The highly anticipated AL4 tonneau cover is slated for release in the fourth quarter, poised to drive substantial revenue in 2025. The SOLIS and COR products, currently in Alpha testing, are expected to launch next year, further enhancing Worksport’s product portfolio.*
Production Capacity Expansion:
Worksport is on track to significantly increase production capacity, aiming to produce over 200 tonneau covers per day by 2025. This expansion will ensure the company can meet rising demand while improving margins, driven by the introduction of new, high-demand product lines.Focus on Profitability and Future Growth:
Worksport’s CEO, Steven Rossi, outlined the company’s strategic objectives, stating, “Our goal is to become cash flow positive in 2025, with a keen focus on EPS and EBITA. We are targeting revenue growth to $25-$34.5 million in 2025.” The company also announced a strategic shift towards cost optimization, with a target of $2 million in savings, further bolstering its financial position.
Strong 2025 Outlook:
Worksport anticipates exceeding its previously announced revenue guidance of $6 million to $8 million by year-end 2024, significantly surpassing the analyst consensus estimate of $7 million. Looking ahead, Worksport projects its existing product lines will generate $20 million in revenue in 2025, with new product launches, including the COR and SOLIS systems, contributing up to an additional $18.5 million. This robust outlook positions Worksport for significant revenue growth, potentially reaching $25 million to $34.5 million in 2025 (analyst consensus estimate of $28.8 million).
The positive news propelled WKSP stock higher by 5.10% to $0.87 on Wednesday, reflecting investors’ confidence in Worksport’s future prospects. With its innovative products, strategic expansion, and focus on profitability, Worksport appears well-positioned to capitalize on the burgeoning electric vehicle market and achieve its ambitious growth goals.
